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1、Retail TechnologyIndustry ReportQ1 20232Executive SummaryDespite economic headwinds,digital transformation in retail is accelerating as hybrid shopping,SKU expansion,supply chain resiliency,and generative AI drive growth in retail technologyThe global digital transformation market in retail is growi
2、ng at an 18.1%CAGR and is expected to reach$390B by 2026 1Looking at the broader economic environment,The Federal Reserve now anticipates“a mild recession starting later this year”with GDP projected to increase just 0.4%in 2023 5.This comes as the Federal Reserve continues to tighten monetary policy
3、 while also trying to mitigate recent turmoil in the banking sector and minimize the risk of contagionAlthough US retail sales have remained resilient,March saw a decrease of-1.0%as consumers reprioritize their spending and focus on essential goods instead of discretionary items 2Global retail eComm
4、erce sales are expected to slow as pandemic-driven growth in 2021 subsides,slowing to 9.7%in 2022 3Both capital raise and M&A transaction volume remain largely subdued compared to the peaks experienced in 2021.In Q1 2023,M&A activity increased slightly and leveled off while capital raise activity co
5、ntinued the downward trend experienced in previous quarters 4There were 50 M&A transactions in Q1 2023 compared to 45 in Q4 2022.Capital raise volume decreased with 117 transactions in Q1 2023 compared to 182 in Q4 2022Looking ahead,we expect the retail technology market to remain below the elevated
6、 2021 levels as growth subsidies and investors seek quality companies at a discounted valuationHowever,attractive companies with good operating metrics will continue to receive strong interest and outsized valuationsNotable M&A Transactions Include:Notable Capital Raises Include:$2.1B$1.4B$663M$375M
7、$800M Later Stage VC$270M Series D$120M Later Stage VC$100M Series D1Mordor Intelligence:Digital Transformation Market In Retail2U.S.Census:Advance Monthly Retail Trade Report3eMarketer:Worldwide Ecommerce Forecast Update 20224Pitchbook and 451 Research;data includes US,Europe,and AsiaCapital Raise
8、Transactions below$1M are not included5The Federal Reserve:Federal Open Market Committee3Agenda1Industry Overview2Transaction Detail3Capital Raise Deep Dive4Cascadia Capital Overview5Technology Team Overview01Industry Overview5Retail Technology Industry Drivers&DynamicsRetail Sales Waver As Consumer
9、s Feel The Pressure From InflationAlthough US retail sales have remained resilient,March saw a decrease of-1.0%as consumers spent less on discretionary spending,including motor vehicles and home furniture,and spent more on groceries,food services,and health&personal care1Mordor Intelligence:Digital
10、Transformation Market In Retail2US Census:Advance Monthly Retail Trade Report3eMarketer:Worldwide Ecommerce Forecast Update 2022$144$169$200$236$279$329$3892020*2022420252026Retail Technology Growth Remains ResilientGlobal Digital Transformation Market in Retail 1($in billions)Despite mac
11、ro headwinds decelerating consumer spending,retail tech continues to grow driven by smart retail,social commerce,and virtual shopping as well as continued internet penetration and growth from emerging economiesUS Retail Sales 2Seasonally AdjustedConsumers Are Reprioritizing Their SpendingeCommerce S
12、ales Are Expected To Return To Pre-pandemic LevelsPandemic-driven growth in 2021 is expected to globally subside,slowing to 9.7%in 2022,as inflation adjusted spending and diverging economic stability take hold$5,211$5,717$6,310$6,913$7,528$8,148 17.1%9.7%10.4%9.6%8.9%8.2%18.8%19.7%20.8%21.9%23.0%24.
13、0%2022420252026Retail eCommerce Sales Worldwide%Change%of total retail saleseCommerce Sales Growth 3($in trillions)Percent Change in US Spending 2Inflationary pressure and a recessionary environment are causing consumers to reprioritize their spending,focusing on essential goods instead o
14、f discretionary spendingJan 2021 Oct 202234.4%17.6%17.5%12.0%7.6%7.6%7.3%4.2%3.6%3.0%2.4%1.6%-6.4%Gasoline stationsMiscellaneous store retailersFood services&drinking placesNon-store retailersFood&beverage storesBuilding material&garden eq.&Clothing&clothing accessoriesHealth&personal care storesMot
15、or vehicle&parts dealersGeneral merchandise storesSporting goods,hobby,&bookFurniture&home furn storesElectronics&appliance storesPrioritizing spendingDeprioritizing spending1.6%0.5%(1.6%)2.7%1.7%1.2%0.7%0.4%1.0%(0.4%)0.7%0.6%1.3%3.2%(0.2%)(1.0%)Oct-21Nov-21Dec-21Jan-22Feb-22Mar-22Apr-22May-22Jun-22
16、Jul-22Aug-22Sep-22Oct-22Nov-22Dec-22Jan-23Feb-23Mar-23Dec-21(1.6%)Nov-22Dec-22Feb-23(1.0%)(1.1%)(0.2%)Mar-23(1.0%)6Key Industry Trends Transforming Retail TechnologySupply Chain ResiliencyGenerative AIReturn to Physical StoresCost Realignment1Deloitte:Retail Tech Report 20222New York Fed:Global Supp
17、ly Chain Pressure Index3Forbes:Six Ways Retail Can Leverage AI1243Change is on the horizon as AI is poised to transform retail and eCommerce with recent advances in generative AI models and widespread awareness increasing.As funding floods into the space,further advancement and adoption are expected
18、 3Recent supply chain turbulence has caused retailers to rethink their strategy and focus on building resilient infrastructure through increased visibility and flexible fulfilment71%73%62%38%42%38%41%30%17%21%FashionElectronicsRestaurantsGroceriesHouseholdApr-20Mar-22The pandemic resulted in long-te
19、rm changes to consumer purchasing behavior.However,as the pandemic fades consumers have begun returning to physical stores leading to a need for a hybrid shopping experience6.6%7.1%7.2%7.0%6.4%6.1%5.3%5.4%4.4%Driven by increasing demand for variety and accelerated by the pandemic,retail margins have
20、 been compressing for nearly a decade leading to the need for a new strategy64%of retail executives are worried about not receiving inventory on time75%of shoppers are concerned about stockoutsPortion of Consumers Who Plan To Buy Online In The Next Two Weeks By CategoryExperiential retailContactless
21、 in-storeData-driven storesUS Retail EBIT Margin(adjusted)Media ValueNew Business Models:brands are going D2C to cut out retail middlemen and increase marginsIncreasing Efficiencies:with of executives planning to use analytics for better decision making,technology and IT spend will play an important
22、 role-1.50.01.53.04.5Global Supply Chain Pressure Index 2Supply chain crisisImportant FactorsRetail margins are compressingAI$53.9B global generative AI market size by 202832.2%CAGR over the next five years900%increase in Google searches for AI,LTMPersonalized product recommendationsMonitor&optimize
23、 pricesCustomer service chatbotsSupply chain&inventory optimizationUse Cases7324205882443756824407723Total UnicornsRetail TechnologyGlobal Unicorn Births:Private Companies 1Retail Technology Unicorn Births Decrease1CB Insights:State of retail Tech|Global T
24、rends2The Washington Post:End Of Tech Unicorn Start upsTotal Unicorns:1,191Retail Technology:203Valued at$1B+,2014 Q3 2022Driven by macro factors and recent economic uncertainty,the number of new unicorn births has plummeted as valuations decrease and investors deploy less capital and focus more on
25、financial performanceThe billion-dollar tech unicorn is becoming rare again.The ultimate symbol of Silicon Valley wealth became commonplace.Then the economy shifted The Washington Post 18Cascadias Retail Technology LandscapeCascadia divides the retail technology landscape into four distinct categori
26、es.These categories all work together to provide seamless retail experiences across both digital and physical channelsCustomer AnalyticsSubsectors Location Analytics&Proximity Marketing Omnichannel AnalyticsSolutions that help retailers understand customer behavior to better tailor their marketing a
27、nd merchandising strategiesCustomer Experience EnhancementSubsectors Augmented&Virtual Reality Personalization Price ComparisonSolutions that allow retailers to personalize and target their outreach to customerseCommerce EnablementSubsectors Ecommerce Platform and Carts Live Chat&Chatbots POS System
28、sPlatforms and products that facilitate,streamline,or optimize eCommerce sellingOperations ManagementSubsectors Inventory Management Store Management Supply Chain Management Web Design&ManagementSolutions that help retailers manage their physical and digital stores,inventory,operations and supply ch
29、ains 9US Private Equity Dry Powder 1(USD$in Billions)US Private Equity Dry Powder Remains At Record LevelsLiquidity remains at historical levels with over$776 billion in dry powder available for US private equity investorsA substantial amount of capital remains from previous vintage years indicating
30、 that funds have not been rushing to deploy capitaleCommerce VC Deal Activity Increases In Q4 While Deal Value DecreasesIn Q4 2022,eCommerce VC deal activity continued to decrease with$1.0B in funding across 80 dealsDespite historically resilient consumer spending,many eCommerce companies face headw
31、inds from intense competition,rising customer acquisition cost,and shrinking marginsAs economic headwinds increase and a recession looms,we expect to see a meaningful pullback in deal activity during the remainder of 2023 as investors wait out a tumultuous market in hopes of a soft landing with a re
32、newed focus on quality companies$328$361$391$375$317$324$335$395$411$480$507$619$714$780$847$911$77620222020152014CumulativeOverhang by vintage303649393439455495475938496$0.0$1.0$2.0$3.0$4.0$5.0Deal Value($B)Deal CounteCommerce VC Deal Activity by Quarter
33、1Source:PitchBook(USD$in Billions)Institutional Capital10Select Retail Technology M&A TransactionsAcquisition multiples reflect scale,business models,growth and scarcity value premium multiples are typically paid for largeplatforms with recurring revenue,strong growth and unique technologyTarget Des
34、criptionSelected Market ActivityRevenue MultipleTransaction Size4.2x$519MMedianSource:Pitchbook Data,451 ResearchJuly 2022$152M4.4xProvides an E-commerce platform for online home and lifestyle goods through its website and related mobile application for consumers.Aug 2022$2.1B42.0 xProvides AI-based
35、 order fulfillment and logistics management SaaS and APIs for eCommerce merchants globally$663M3.8xCloud-based platform that enables clients to integrate and manage their merchandise sales across multiple online channels with solutions including inventory availability,pricing optimization,and data a
36、nalyticsNov 2022$1.4B3.5xOperates an online social marketplace for apparel and accessories including both new and secondhand products for customers in the US,Canada,Australia,and IndiaJan 2023$100M12.0 xDeveloper of cost management software designed to help manage restaurant inventory by offering re
37、al-time inventory tracking,pricing information and cost controlJan 2022$375M4.0 xProvides enterprise robotic automation systems and AI-based supply chain management SaaS and related APIs to businesses globallyAcquired byAcquired byAcquired byAcquired byAcquired byAcquired byMar 202311Select Retail T
38、echnology Capital RaisesTop venture capital and growth equity firms have backed Retail Technology platforms with established product-market fit,a visionary and execution-focused leadership team,and strong growth prospects Source:Pitchbook Data,451 Research$800MDeveloper of a buy now,pay later paymen
39、t platform designed to facilitate cashless payments through installmentsMar 2022$135MDeveloper of a product information management platform designed to manage product information and assets across all sales channelsApril 2022$210MSupply chain platform enabling companies to compete and grow,offering
40、logistic tools for warehousing,freight,and fulfillmentMar 2023$270MDeveloper of a financial platform designed to create disruptive meaningful products in retail creditFeb 2023$100MOperates a wholesale cannabis marketplace platform intended to connect retailers with brands and distributorsNov 2022$12
41、0MDeveloper of a software-as-a-service platform to digitally transform businesses throughout the food supply chain.Jul 2022$63MMay 2022Developer of a system to make a frictionless checkout experience for all using advanced computer visionTarget DescriptionSelected Market ActivityInvestorsAmountRaise
42、d12Most Active Strategic BuyersSource:Pitchbook and 451 ResearchStrategic M&A:Acquisitions from 2020 Q1 2023Company Name#of New InvestmentsNew Investments876655444413Company Name#of New InvestmentsNew InvestmentsMost Active Private Equity InvestorsSource:Pitchbook and 451 ResearchIncludes
43、 control and growth equity investments above$1MPE:New Investments from 2020 Q1 202302Transaction Detail15Retail Technology M&A OverviewRetail Technology M&A TransactionsRetail Technology M&A Activity OverviewM&A Transactions by Subsector,Q1 2023Source:Pitchbook and 451 Research;data includes US,Euro
44、pe,and AsiaCapital Raise Transactions below$1M are not included8%12%50%30%Customer AnalyticsCustomer ExperienceEnhancementeCommerce EnablementOperations Management4749695867456494908877045500501001501Q192Q193Q194Q191Q202Q203Q204Q201Q212Q213Q214Q211Q222Q223Q224Q221Q23Customer AnalyticsCust
45、omer Experience EnhancementeCommerce EnablementOperations ManagementMedian Multiples by Year4.1x1.8x3.3x4.7x20022*EV/RevRetail Technology M&A transaction volume increased slightly in Q1 2023.However,transaction volume still remains subdued compared to 2021 and 2022 levels as economic head
46、winds impact activityGrowth in M&A transactions was driven by innovation and digitalization in retail and eCommerce processes,from checkout to inventory management,order fulfillment,and in-store service.Retail technology plays a fundamental role in enhancing the CX Notable recent transactions includ
47、e:SoftBanks$375M acquisition of Berkshire Grey in March 2023Navers$1.4B acquisition of Poshmark in January 2023CommerceHubs$663M acquisition of ChannelAdvisor in Nov.2022 16Retail Technology Capital Raise OverviewRetail Technology Capital Raise TransactionsCapital Raises by Subsector,Q1 20237%9%50%3
48、4%Customer AnalyticsCustomer ExperienceEnhancementeCommerce EnablementOperations Management2272362322432363354347377376296242003004001Q192Q193Q194Q191Q202Q203Q204Q201Q212Q213Q214Q211Q222Q223Q224Q221Q23Customer AnalyticsCustomer Experience EnhancementeCommerce EnablementOperatio
49、ns ManagementMedian Multiples by Year*EV/Rev7.2x6.7x9.7x7.6x20022Retail Technology Fundraising OverviewContinuing the trend from previous quarters,Retail Technology capital raise transaction volume decreased in Q1 2023Platforms that provide eCommerce enablement and operations management a
50、re the top subsectors of interest for investors.Innovations in supply chain,eCommerce,and AI have consistently attracted growth capital investmentNotable recent financings include:Kredivos$270M Later Stage VC round in March 2023 LeafLinks$100M Later Stage VC round in February 2023 GrubMarkets$120M L
51、ater Stage VC round in July 2022Source:Pitchbook and 451 Research;data includes US,Europe,and AsiaCapital Raise Transactions below$1M are not included17M&A Transactions by Deal Size1Q22 LTM1Q23 LTM173127897$500M+100-50025-10010-255-$500M+100-50025-10010-255-100-5Mean/MedianTransaction S
52、ize$628M/$100MMean/MedianTransaction Size$565M/$78M17%31%27%8%7%9%18%28%24%10%14%6%Source:Pitchbook and 451 Research;data includes US,Europe,and Asia18Capital Raise Transactions by Deal SizeQ1 2022 LTMQ1 2023 LTM26625$500M+100-50025-10010-255-36403$500M+100-50025-10010-255-1
53、01-5Mean/MedianTransaction Size$43M/$7MMean/MedianTransaction Size$25M/$6M1%6%17%16%42%18%1%4%12%21%48%16%Source:Pitchbook and 451 Research;data includes US,Europe,and AsiaCapital Raise Transactions below$1M are not included19Customer Analytics M&A VolumeCustomer AnalyticsTop Subsectors by Transacti
54、on Count2019 1Q 2023Location Analytics&Proximity Marketing:31Omnichannel Analytics:2704051015201Q19 2Q19 3Q19 4Q19 1Q20 2Q20 3Q20 4Q20 1Q21 2Q21 3Q21 4Q21 1Q22 2Q22 3Q22 4Q22 1Q23Location Analytics&Proximity MarketingOmnichannel AnalyticsM&A deals in the Customer Analytics sect
55、or experienced a rebound in Q1 2023 from the lows seen in Q4 2022While transaction count continues to be subdued,especially compared to 2021,an increase in transactions in Q1 2023 signals that the market may have reached a low point and that continued growth could be expectedWe believe the shift in
56、consumer purchasing behavior,driven by the pandemic,resulted in increased demand for tools that allow retailers to better understand todays complex customer journey.This trend will continue to drive interest in Customer Analytics platformsWhile we believe the long-term prospects for the sector are s
57、trong,we expect the current trend of lower-than-normal transaction activity to continue through the remainder of 2023 given the elevated interest rate environmentNotable recent transactions include:Verints acquisition of Qudini,a retail management and analytics platform in January 2023Retailers Focu
58、s On Omnichannel and Location Analytics Drives Demand For Customer Analytics ToolsSource:Pitchbook and 451 Research;data includes US,Europe,and AsiaCapital Raise Transactions below$1M are not included20Customer Analytics Capital Raise VolumeInvestment In Customer Analytics Tools Has Decreased Since
59、2021 But Now Remains Stable Customer Analytics tools have seen consistent investment interest over the last five quarters with transaction volume continuing to remain steady in Q1 2023Customer Analytics deal activity has experienced a significant decrease in volume since the peaks in 2021Despite eco
60、nomic headwinds,we expect Customer Analytics deal activity to continue to remain resilient with a similar volume throughout the remainder of 2023Driven by increased concern over supply chain resiliency and improving merchandising,retailers seek to leverage Omnichannel and Location Analytics to ident
61、ify supplier risks,predict disruptions,and ultimately improve efficiency while reducing costNotable recent raises include Threecolts$108M Series A round in March 2023Threecolts is a cloud software and data visualization tool provider for eCommerce businesses.The funding will allow the company to exp
62、and its product team and customer reachNotable recent raises include Scanntechs$40M Later Stage VC round in January 2023Customer AnalyticsTop Subsectors by Financing Count2019 1Q 2023491020301Q19 2Q19 3Q19 4Q19 1Q20 2Q20 3Q20 4Q20 1Q21 2Q21 3Q21 4Q21 1Q22 2Q22 3Q22 4Q22 1Q23Loc
63、ation Analytics&Proximity MarketingOmnichannel AnalyticsLocation Analytics&Proximity Marketing:38Omnichannel Analytics:150Source:Pitchbook and 451 Research;data includes US,Europe,and AsiaCapital Raise Transactions below$1M are not included21Customer Experience Enhancement M&A VolumeCustomer Experie
64、nce EnhancementM&A Activity In The Customer Experience Sector Has Decreased Significantly Compared To Previous QuartersTop Subsectors by Transaction Count2019 1Q 2023Augmented&Virtual Reality:33Personalization:166Price Comparison:44830401Q19 2Q19 3Q19 4Q19 1Q20 2Q20
65、3Q20 4Q20 1Q21 2Q21 3Q21 4Q21 1Q22 2Q22 3Q22 4Q22 1Q23Augmented&Virtual RealityPersonalizationPrice ComparisonM&A deal volume in the Customer Experience Enhancement sector has appeared to reach a low point and has remained steady in Q1 2023.Deal volume has decreased significantly compared to previou
66、s levels and has returned to pre-2019 volume.However,we expect deal activity to continue its current trend through the remainder of 2023The Customer Experience Enhancement sector benefited from pandemic-driven shifts in consumer purchaser behavior as eCommerce sales experienced a rapid acceleration
67、and retailers looked for tools to help them address this new era of shoppingNotable recent transactions include Pinterests acquisition of The Yes for$88M in June 2022The Yes is an AI-powered personalized daily shopping feed that learns a users style as they shopThis acquisition will help Pinterest d
68、rive shopping efforts,including the development of features for both shoppers and retailersNotable recent transactions include Farfetchs acquisition of Wannaby for$29M in April 2022This acquisition of Wannaby,a mobile-based AR try-on platform,will enable Fartech to expand and scale its virtual try-o
69、n capabilitiesSource:Pitchbook and 451 Research;data includes US,Europe,and AsiaCapital Raise Transactions below$1M are not included22Customer Exp.Enhancement Capital Raise VolumeCapital Raise Activity In The Customer Experience Enhancement Sector Returns To Pre-2020 LevelsSource:Pitchbook,451,PwC:J
70、une 2022 Global Consumer Insights Pulse Survey;data includes US,Europe,and AsiaCapital Raise Transactions below$1M are not includedSince Q1 2022,Customer Experience Enhancement tools have experienced a decrease in deal activity.In Q1 2023,this trend continued with deal volume reaching a three-year l
71、owWe expect transaction volume to level off throughout the remainder of 2023 as the shift towards eCommerce shopping as well as recent advancements in generative AI technology drive growth in the sectorRetailers are quickly adopting VR technology as behemoths like Amazon and Snapchat are rolling out
72、 their own VR shopping tools.According to a PwC study,32%of VR users reported buying products after checking them out on VR platformsNotable recent transactions include Luma AIs$20 M Series A round in March 2023Luma Labs,provides a software and app to create photorealistic 3D and VFX features for 3D
73、 content and image creationNotable recent raises include Nfinites$100M Series B round in June 2022Nfinite,a 3D visualization and eCommerce merchandising platform,plans to use the capital for engineering,marketing,support needs,and to expand its global customer baseCustomer Experience EnhancementTop
74、Subsectors by Financing Count2019 1Q 2023Augmented&Virtual Reality:89Personalization:280Price Comparison:223239222240501Q19 2Q19 3Q19 4Q19 1Q20 2Q20 3Q20 4Q20 1Q21 2Q21 3Q21 4Q21 1Q22 2Q22 3Q22 4Q22 1Q23Augmented&Virtual RealityPersonalizationPrice Comparison23eComme
75、rce Enablement M&A VolumeM&A Activity In The eCommerce Enablement Sector Has Leveled OffeCommerce EnablementTop Subsectors by Transaction Count2019 1Q 2023eCommerce Platform and Carts:270POS Systems:245929363234425001Q19 2Q19 3Q19 4Q19 1Q20 2Q20 3Q20 4Q20 1Q21 2Q21 3
76、Q21 4Q21 1Q22 2Q22 3Q22 4Q22 1Q23eCommerce Platform and CartsPOS SystemsM&A deal activity in the eCommerce Enablement sector rebounded in Q1 2023 disrupting the previous downward trend which started in Q2 2022Rising digital adoption,increased access to internet connection,and pandemic-driven online
77、purchasing habits have all helped to drive eCommerce growth.However,high inflation and a slowing economic environment have combined to temper overall transaction volumeFor the remainder of 2023,we expect eCommerce enablement M&A volume to remain below 2022 levels as inflationary and recessionary pre
78、ssures persist,causing consumers to tighten spending and acquirers to seek quality companiesNotable recent transactions include Sycamore Partners$400Macquisition of Lowes Canada in March 2023Lowes is a retailer of branded home improvement products intended to help homeowners and renters to improve t
79、heir homes and businessesNotable recent transactions include Vinteds acquisition of Rebelle for$31M in August 2022Rebelle AB is an online marketplace for second-hand designer fashion.It ships its products to over 40 countries across the worldSource:Pitchbook and 451 Research;data includes US,Europe,
80、and AsiaCapital Raise Transactions below$1M are not included24eCommerce Enablement Capital Raise VolumeeCommerce Enablement Capital Raise Volume Continues To DecreaseCapital raise activity in the eCommerce Enablement sector decreased significantly in Q1 2023.However,this continues the downward trend
81、 which started in Q1 2022Capital raise volume has dropped off significantly as economic uncertainty continues.Investors have become wary of putting cash to work in an unfavorable environmentWe expect capital raise activity to remain below 2021s elevated levels going forward.However,we do expect the
82、number of investments to level off throughout the remainder of 2023 as investors are pressured to put capital to workNotable recent raises include Kredivo Holdings$270M Series D raise in March 2023Kredivo Holdings platform provides access to credit to a large number of people and gives eCommerce sho
83、ppers instant credit financing based on real-time analysisNotable recent raises include Leaflinks$100M Series D raise in February 2023Leaflink plans to use the funds to support its customers evolving technology and operational needs through enhanced platform functionalityeCommerce EnablementTop Subs
84、ectors by Financing Count2019 1Q 2023eCommerce Platform and Carts:2,044POS Systems:63665425805001Q19 2Q19 3Q19 4Q19 1Q20 2Q20 3Q20 4Q20 1Q21 2Q21 3Q21 4Q21 1Q22 2Q22 3Q22 4Q22 1Q23Ecommerce Platform and CartsPOS SystemsSource:Pitchbook and 451 R
85、esearch;data includes US,Europe,and AsiaCapital Raise Transactions below$1M are not included25Operations Management M&A VolumeThe Return To Physical Stores Has Helped To Driven Demand For Operations Management ToolsM&A activity in the Operations Management sector experienced a slight decrease in Q1
86、2023.However,deal activity has remained relatively steady over the past three quartersThe return to physical stores and the supply crisis in early 2022 highlighted the importance of operations management solutions,providing a boost in deal activity historicallyLooking ahead,we expect transaction vol
87、ume in the Operations Management sector to remain constant for the remainder of 2023.However,improving economic conditions could provide potential upside as strong industry tailwinds continue to prevailNotable recent transactions include Gesher I Acquisitions$435M reverse merger with Freightos Janua
88、ry 2023Freightos platform provides tools to support supply chain efficiency and agility by enabling real-time procurement of ocean and air shipping logisticsNotable recent transactions include Shopifys$2.0B acquisition of Deliverr in July 2022Shopify acquired Deliverr to boost the Shopify Fulfilment
89、 Network and give its customer base access to a powerful logistics platform to boost customer engagement and experience with each transactionOperations ManagementTop Subsectors by Transaction Count2019 1Q 2023Inventory Management:70Store Management:42Supply Chain Management:27921729282228
90、4529342320501Q19 2Q19 3Q19 4Q19 1Q20 2Q20 3Q20 4Q20 1Q21 2Q21 3Q21 4Q21 1Q22 2Q22 3Q22 4Q22 1Q23Store ManagementSupply Chain ManagementSource:Pitchbook and 451 Research;data includes US,Europe,and AsiaCapital Raise Transactions below$1M are not included26Operations Management Capital Rais
91、e VolumeOperations Management Capital Raise Volume Has Leveled Off Since Its Peaks In Early 2022Capital raise activity in the Operations Management sector decreased slightly in Q1 2023 and has continued the previous downwardtrend which started in Q2 2022Retailers are increasingly turning to technolo
92、gy to optimize the in-store environment as well as the inventory and procurement functions.Despite these tailwinds driving growth,investment volume in the sector has remained subdued given the economic backdropLooking forward,we expect capital raise volume in the Operations Management sector to retu
93、rn to pre-2019 levels due to the continued proliferation of hybrid shopping and increased calls for supply chain resiliency Notable recent raises include Overhauls$73M late stage raise in February 2023Developer of a visibility and supply chain platform,Overhaul will deploy the capital to expand glob
94、ally,enhance products,and fund M&ANotable recent raises include Flexports$935M late stage raise in March 2022Flexport raised capital to continued to develop their platform and expand into new geographiesOperations ManagementTop Subsectors by Financing Count2019 1Q 2023Inventory Management:202Store M
95、anagement:147Supply Chain Management:972657572696557666896097847400501001501Q19 2Q19 3Q19 4Q19 1Q20 2Q20 3Q20 4Q20 1Q21 2Q21 3Q21 4Q21 1Q22 2Q22 3Q22 4Q22 1Q23Inventory ManagementStore ManagementSupply Chain ManagementSource:Pitchbook and 451 Research;data includes US,Europe,and AsiaCapit
96、al Raise Transactions below$1M are not included03Capital Raise Deep Dive28Breakdown of Capital Raise Transactions by SeriesCapital Raise OverviewAcross all investment stages,transaction volume decreased in 1Q23 LTM compared to 1Q22 LTM as economic headwinds depressed overall transaction volumeThe eC
97、ommerce Enablement sector accounted for the majority of capital raise transactions across all investment stagesOperations Management was the second largest sector by transaction count across all investment stagesAs companies in these sectors continue to mature,we expect to see a greater number of la
98、te-stage investments and M&A transactions over the coming years 3303533200250300350Q1 2022 LTMQ1 2023 LTMQ1 2022 LTMQ1 2023 LTMQ1 2022 LTMQ1 2023 LTMQ1 2022 LTMQ1 2023 LTMSeries ASeries BSeries CSeries DCustomer AnalyticsCustomer Experience EnhancementeCommerce EnablementOperat
99、ions ManagementSource:Pitchbook and 451 Research;data includes US,Europe,and AsiaCapital Raise Transactions below$1M are not included1Q22 LTM1Q23 LTM1Q22 LTM1Q23 LTM1Q22 LTM1Q23 LTM1Q22 LTM1Q23 LTM29Series A Capital Raise TransactionsSeries A ObservationsSeries A transaction volume decreased in Q1 2
100、023,reaching a three-year low.This continues the previous downward trend which started in Q1 2022The broader economic headwinds have significantly impacted investment volume in early-stage companies as investors have a renewed focus of profitability and financial metricseCommerce Enablement and Oper
101、ations Management companies have been the target of the majority of investmentsWhile not the largest category,Customer Experience Enhancement investments has remained relatively constant across each quarter,an indication of the growing relevance for the sector4870436659424665807674968467463224020406
102、0801001201Q192Q193Q194Q191Q202Q203Q204Q201Q212Q213Q214Q211Q222Q223Q224Q221Q23Customer AnalyticsCustomer Experience EnhancementeCommerce EnablementOperations ManagementSource:Pitchbook and 451 Research;data includes US,Europe,and AsiaCapital Raise Transactions below$1M are not included30Series B Capi
103、tal Raise TransactionsSeries B ObservationsSeries B transaction volume decreased in Q1 2023,continuing the trend experienced with Series A.This continues the downward trend which started in Q1 2022Although Series B transaction count reached an all time high in 2021,it has since decreased significant
104、ly as investors become more cautious and companies are conscious of compressed valuations and are waiting for the ideal time to raise their next roundSimilar to the Series A transactions,eCommerce Enablement and Operations Management companies account for most of the Series B raises over the past 3
105、yearsBoth Operations Management and Customer Experience Enhancement platforms have seen consistent Series B investment interest over the past two years while Customer Analytics and Customer Experience Management has fluctuated 3327373535350434227201502040601Q192Q193Q194Q191Q202Q203Q204Q20
106、1Q212Q213Q214Q211Q222Q223Q224Q221Q23Customer AnalyticsCustomer Experience EnhancementeCommerce EnablementOperations ManagementSource:Pitchbook and 451 Research;data includes US,Europe,and AsiaCapital Raise Transactions below$1M are not included31Series C Capital Raise TransactionsSeries C Observatio
107、nsDespite a slight rebound in Q4 2022,Series C transaction volume decreased in Q1 2023 continuing the broader downward trend which started in Q2 2022Similar to earlier stages,eCommerce Enablement and Operations Management have received the bulk of Series C investmentsInvestment in Customer Analytics
108、 platforms wanes considerably post-Series B,indicating that these sectors are generally in an earlier stage of the startup lifecycle compared to other sectorsSimilar trends can be seen with Customer Experience Enhancement tools492301Q192Q193Q194Q191Q202Q203Q204Q201Q2
109、12Q213Q214Q211Q222Q223Q224Q221Q23Customer AnalyticsCustomer Experience EnhancementeCommerce EnablementOperations ManagementSource:Pitchbook and 451 Research;data includes US,Europe,and AsiaCapital Raise Transactions below$1M are not included32Series D Capital Raise TransactionsSeries D ObservationsU
110、nlike earlier stage investments,Series D transaction volume increased slightly in Q1 2023 demonstrating that late-stage companies are still able to garner strong interestContinuing the trend observed previously,eCommerce Enablement companies account for the majority of Series D raisesOperations Mana
111、gement tools received a noticeable amount of Series D investment in 2022,as the demand for supply chain solutions increased driven by the supply chain crisis which gave a renewed focus on investment in the sectorAs observed in Series B raises,investment in Customer Analytics and Customer Experience
112、Enhancement platforms continues to wane post Series B indicating the earlier lifecycle stage compared to other sectors570986613048121Q192Q193Q194Q191Q202Q203Q204Q201Q212Q213Q214Q211Q222Q223Q224Q221Q23Customer AnalyticsCustomer Experience EnhancementeCommerce EnablementOperations Managemen
113、tSource:Pitchbook and 451 Research;data includes US,Europe,and AsiaCapital Raise Transactions below$1M are not included04Cascadia Capital Overview34Our FirmBankers in Austin,Connecticut,Los Angeles,Minneapolis,Nashville,and SeattleINDUSTRYEXPERTISERESULTSFOCUSDEALVOLUMEFounded in 1999Cascadia has a
114、successful 20+year history 7018475+Managing Directors investment banking professionalstransactions completed,with more than$20 billion in aggregate valueLeading diversified investment bankM&A,private placements,advisory servicesSpecialized in-depth expertise across multiple industry verticalsReprese
115、nting clients in the US and globally,including Europe,Asia and AustraliaExperienced team with successful track recordCascadia is the investment bank of choice for entrepreneurs and family-owned companiesDecades of investment banking and operational expertiseDeep capital markets expertise35Providing
116、a Full Suite of Banking ServicesMERGERS&ACQUISITIONSWe have completed hundreds of M&A transactions ranging in size from$20-$500 million.Our thorough and disciplined process,in combination with our deep industry expertise,has resulted in a proven track record of delivering successful outcomes for our
117、 clients.CORPORATE FINANCEWe have extensive experience placing equity and debt capital ranging from$10-$250 million.We leverage our deep relationships with institutional investors;including private equity,growth equity,venture capital,family office,mezzanine and venture debt,hedge funds and BDCs.STR
118、ATEGIC ADVISORY SERVICESWe provide our clients with analytical data and insights to facilitate strategic decision-making.We advise our clients on how to maximize shareholder value and then provide support for transaction implementation.PRIVATE CAPITALWe listen carefully to business owners and manage
119、rs and then work closely with them to custom design long-term and flexible capital solutions.Our approach resonates particularly well with family-owned and closely-held companies.ENGAGEMENTS INCLUDE:Mergers&Acquisitions(Buy&Sell Side)Corporate Divestitures Management Buyouts Leveraged Buyouts Recapi
120、talizations Partial Liquidity Events Private Equity Capital Raises Public Company Capital Raises Debt Financings&Restructurings Project Finance Valuations Fairness Opinions Shareholder Rights Planning Shareholder Value Analysis Strategic Alternatives Reviews Strategic Partnerships&Joint Ventures Spe
121、cial Situations36Process and Experience Deliver ResultsWe Differentiate Each Process With aCustomizedApproachWe are thoughtful advisors who deliver a tailored process to suit the needs of our clientsWe understand the strategies of the counterparties,enabling us to tell them why they should be intere
122、sted allowing Cascadia to drive the transaction and maximize resultsTeam Members HaveDeep IndustryExpertiseWith bankers across multiple industry verticals,we have the experience to offer industry breadth while maintaining sector depthDedicated resource model with comprehensive vertical expertise fro
123、m Managing Director to AnalystOur Experience and Approach DriveResultsWe have experience,industry focus and a differentiated process that drives successOur transactions are built upon delivering the best quantitative and qualitative terms with the most desirable counterparty$15.5+billion in total M&
124、A transactions closed in the firms history$4.5+billion in total capital raised in the firms history37Proven ResultsMost recent transactions38Cascadia Capital Leadership TeamCascadia has a distinguished team of investment banking professionals with expertise in a multitude of industries and capital m
125、arketsLeading diversified investment bank advisory firm serving domestic and global clienteleCoordinated delivery of appropriate expertise across the firmStrategic insight to assist in identifying and executing a range of alternatives18 Managing Directors 70 Investment banking professionalsMore than
126、$20 billion in transaction value05Technology Team Overview40Technology PracticeOverviewWe have over 80 years of collective experience in M&A and Financing transactions within the Technology sector,and extensive prior operational and corporate development expertise.We are domain experts,which enables
127、 us to uniquely position our clients in terms of their people,business models and technology,to the most appropriate strategic acquirers or private equity investors.Representative TransactionsPrincipal Sector Focus Sales&Marketing Tech Compliance and eLearning Infrastructure Software Human Capital M
128、anagement/HR Tech Legal and Tax Solutions Public Safety Security Software Development and IT Operations Management(“DevOps”)Storage Management Retail&Commerce Technology Fintech&PaymentsBusiness ServicesConsumer&RetailEnergy Transition&Climate TechFood,Beverage&AgribusinessHealthcareIndustrialsRobot
129、ics,Automation&Artificial Intelligence TechnologyOctober 2022December 202241Cascadias Technology Team Continues to be ActiveCascadia Has Regular Dialogue with Key Industry PlayersTeam Performance(2016 2023 YTD)Financial SponsorsStrategic Buyers Core Technology Sector Coverage$2.5BIn Transaction Valu
130、e since 20168Current Live Engagements49Closed Transactions since 2016Retail&Commerce TechnologySales&Marketing TechnologyInfrastructure SoftwareERP&HR Software42Cascadias Retail Technology ExpertiseInfluencer Marketing Automation PlatformSeptember 2020has been acquired byVirtual Event Management Pla
131、tformInfluencer Product Discovery and Reviews PlatformDigital Customer Experience Management Platform Influencer Product Discovery and Reviews PlatformSocial Customer Feedback Management SolutionGo-To-Market Intelligence PlatformTechnographic Intelligence Platform for Sales TeamsVideolicioushas been
132、 acquired bySquarespaceVideo Automation Platform for Sales and Marketing TeamsGo-To-Market Intelligence PlatformGo-To-Market Intelligence PlatformPerformance Marketing and Demand Generation PlatformDigital Asset Management PlatformPremium B2B Wholesale MarketplaceMarketing Optimization&Predictive An
133、alyticsAI-Driven Product Recommendation and Customer Experience EngineDeveloper-centric WordPress PluginsGo-To-Market Intelligence PlatformMarketing Insights PlatformCurated Wholesale MarketplaceSales Accounts Engagement PlatformContent-Based,AI-Powered,Retail Product Recommendation EngineUGC,Rating
134、s,Reviews,and Influencer Marketing PlatformPendingBarcode&Label Management SolutionPredictive Analytics Marketing PlatformPremium B2B Wholesale MarketplaceDeveloper-centric WordPress Plugins43Cascadias Retail Technology Deal LeadTeague CollinsManaging DirectorContact:(206)436-2576Teague Collins is a
135、 Managing Director at Cascadia Capital in the firms Technology practice.He has over 15 years of investment banking and capital markets experience,executing a variety of M&A and financing transactions for public and private companies across the equity and debt spectrum.Teague joined Cascadia from Gol
136、dman Sachs where he was a part of the Investment Banking Financing Group.Teague was responsible for originating and executing alternative debt and equity transactions for healthcare,consumer,and technology clients.Prior to Goldman Sachs,Teague was with Morgan Stanley in the Global Investment Banking
137、 and Capital Markets group where he executed debt and equity financings,as well as M&A transactions for life sciences and technology clients.Prior to his investment banking career,Teague served as a Surface Warfare Officer in the United States Navy and completed two Middle East deployments.Teague has a B.S.from the United States Naval Academy.